req 2a ,2B,2c and 2D
Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,203,000 886,000 317,000 $1,120,000 $ Stream Division $ 1,815,000 1,288,090 $ 527,000 $ 1,430,000 The company's hurdle rate is 6.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating Income increases by 11 percent. b. Operating income decreases by 12 percent. c. The company invests $255,000 in each division, an amount that generates $112.000 additional income per division. d. Coolbrook changes its hurdle rate to 4.26 percent. JhReq 2C Recalculate ROI and residual income for each division for the independent sit by 11 percent. (Enter your ROI answers as a percentage rounded to two deci 12.34%.). Loss amounts should be indicated with a minus sign.) Req 1 Req 2A ROI Residual Income (Loss) Req 2B River Division % Req 2D Stream Division % Req 1 Req 2A 4 ROI Residual Income (Loss) Req 2B Recalculate ROI and residual income for each division for the independent situation by 12 percent. (Enter your ROI answers as a percentage rounded to two decimal pla 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Req 2C % Req 2D Stream Division % Req 1 Req 2A Req 2B ROI Residual Income (Loss) Recalculate ROI and residual income for each division for the independent situation $255,000 in each division, an amount that generates $112,000 additional income pe percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34 answer to the nearest whole dollars. Loss amounts should be indicated with a minus River Division Re20 % Reg 2D Stream Division % Req 1 Req 2A Req 2B ROI Residual income (Loss) Req 2C Recalculate ROI and residual income for each division for the independent situ rate to 4.26 percent. (Enter your ROI answers as a percentage rounded to tw as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division % Feq 2D Stream Division %